Half Year 2025 Evolution AB (publ) Earnings Call
Your line is muted call recording is on.
Welcome to the evolution Q2 report 2025 presentation during the questions and answer session. Participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to the speakers CEO, Martin carlsson, and CFO, Joe Kim Anderson, please go ahead.
Thank you. Uh, good morning everyone. And uh welcome to the presentation of Evolution's report. For the second quarter 2025, my name is Martin Collison and I'm the CEO of evolution with me. I have our CFO
I will start with some comments on our performance as usual, uh, and then hand over to you, aim for a closer look at our financials. After that, I will conclude with an Outlook, and then we will open the court for questions.
Next slide, please.
So let's start with the financial and operations highlights in the quarter. The 2 main operational teams for the first quarter continued to impact our financial results.
What started with the UK has now followed on more European markets affecting our revenues in the region for the short term, the impact of these measures depend on the level of generalization in markets, where its high it has has had little impact. But in markets where low channelization is it hit uh has meant that it dropped in Revenue, we firmly believe that the regulation is a driver for the market and we, uh, we continue to support Regulators in the only way we can,
This is something that we are practicing with doing to ensure that we are fully prepared when the line shifts.
Thereby, we increase our advantage Competitive Edge and further distance between us and the competition.
However with that said the increased regulation or affecting us to some of higher extent year and years than we anticipated adaptions always take time. And the environment in Europe is still a bit cervid. Making it difficult to provide exact forecasts.
The second operation challenge is to continue in cyber crime, activity in Asia, we're making good progress in combating, these criminal activities and we do everything we can to make sure that we get paid for our Innovations and products in the second quarter. We are starting to see some benefits, uh, with Asia being back to growth in the quarter.
More on that, on the regional breakdown in a minute.
For both these regions, we remain cautiously optimistic about the reminder of 2025 as we continue to evaluate the effects of these measures.
So let's say a few things on the numbers.
Last Revenue came in at 524.321% amounted to 345.3 million euro and the FBI margin came in a 65.9% which is in line with our full year guidance.
Of 66 to 68%.
we do continue to believe that the second half of the year will be stronger than the first half and we keep our full year estimate as before
our life segment was impacted by the European and our nation development with Revenue coming in at 453.77%. It continues to see good momentum in North America. And also believe that activity in Latin America would pick up supported by the new regulation, in Brazil.
Or India revenues to talk us through submitting points 6 million euro growing year on year. By 0.3% 1. Main reason, for the slow growth in Orange is this quarter is the largest payout ever for us. In RMG affecting the total revenue stream. Overall, Rd has a solid performance adjusted for the payout and we still have good potential to grow in this segment.
Well, several of my Stones since we last met.
Uh, We've signed a fantastic licensing agreement with the house from to continue to develop more games like Monopoly. Big boiler and Monopoly Line. This is really customary Innovation and dedication with this license agreement having belonged to competitors for the last 2 decades. We are thrilled to be able to launch more high quality, trademark evolution games, featuring iconic Hazard brands.
We also signed a new partnership agreement with balance Corporation in Rhode Island which uh, constitute a new landmark in our us expansion.
We launched our first ever studio in Asia in the Philippines, the studio marks, a significant milestone in Solutions expansion and serves the regulated Philippines Market.
Uh, which is the first license by Gaming jurisdiction in nature.
We are today launching actually this day, our brand used to live in Brazil with perfect timing to see the opportunities that lies in the past and newly regulated markets.
To conclude this summary of the quarter. I would like to say that even though I'm not satisfied about financial results of operation here. I'm proud of what we accomplished this quarter.
We really put forward take on our challenges and we deliver solid us up.
To some things are overall. It's a stable quarter where we really prove our outstanding ability to do Business Solution, even on size and challenges.
Next slide, please.
If you move on to our operational, kpis consisting of head count, and the game round index,
Uh, we're looking at the head counter almost exactly where we were at the end of the first quarter. Just over 22,000 employees, were responding to here on year growth of 5.2%.
We have efficiency in moving forward and this will contrast to those and also affect the number of employees as we move forward through 2025.
When looking at our new students in the Philippines and Brazil, I'm so proud that now. No matter where we are in the world, the same high standards and benefits, apply to give thousands of young people. Exciting and often International carry an offering National carrier uh and I'm proud of the employer we are
I would like to take this opportunity to emphasize that we when building a studio wherever it is placed have the same exception standard. This means that regardless of this, this this in Columbia Georgia in Philadelphia, we will have the same great work environment and standard for all employees.
In many markets where we answer, we set a completely new standard when it comes to work environments and Facilities facilities and that makes us very proud. Now, the game around index can be seen as a general indicator of activities throughout our network over time for an individual quarter. If that's not always correlated to the revenue development. However as you can see, but this quarter uh we increase our revenues, as well as the higher activity in the network.
Next slide, please.
Now, we come to my favorite slide. Uh, and really this slide would determine the numbers on all other slides. So let's look at new game releases.
Uh, we are still in the midst of our product leaders, uh, and for 2025, we have a high ambition with 110 games plans, new released during the quarter. We have released Super Color game, a huge colorful Platt splash of excitement coming into our game portfolio.
It's a lively dice game that from from the big wins and a Nonstop Action with up to thousand X multipliers.
Uh, you simply pass on your 5 with favorite color, among diverse packing options, nothing short of the true success.
First person back home uh sure to be 1 of the most visually spectacular design games. It captivating RNG based device game. Uh, similar to backup easy to navigate the interface Cutting Edge, 3D graphics and the lights like gaming action.
Uh, we also released lightning backbone and completely new dice backgrounds game with the 1200 X multiplier by Dynamic, dice action continues, uh, our law. It's also our last Edition to the lightning family.
Among the upcoming releases. We have a highly anticipated. Ice fishing. A Speed game. Show with a money wheel. Unlike anything else. The live hold will cost for multipliers fish in icy waters. It's a truly something different. You might have seen it on the ice, uh, 2025 in January.
Uh, this is also the game you saw on the first slide today. The first recovery page.
We have also Super Speed. Dragon Tiger and dragon tiger. Penis have to be released later this summer and beginning of the Fall.
on the R&D side, we released 20 new Fantastic games, this quarter,
Uh, so to summarize, what's happening on the product side, just as usual, and we are very excited to see how the newly released games are received. I'm so proud of all Our Brands who consistently break barriers in the industry and show what gaming and the payment should look like,
Next slide, please.
I briefly mentioned something before that, I think warm some more details.
On July 1st. We announced a truly groundbreaking agreement with Hasbro. A world-leading company with iconic Brands, recognizing Berlin. Every household evolution is now the exclusive global global Provider from monopolies. And other iconic Brands. This worldwide deal which includes the US covers online content for all Evolution Brands such as live, of course, but also in that red tie
Speaker Change: Btg anonymous.
Speaker Change: This agreement comes as a result of a very successful relationship where we have developed Monopoly big bold and Monopoly Life 2 games. Both on our very top of our lineup and 2 of the best performing games in the entire industry.
Speaker Change: With these 2 games, we managed to show what we can do and make out of classic has programs. Uh, it is spectacular and it's very, very nice to have this partnership. So starting January 1st Evolution will be exclusive provider of Hasbro gaming content.
Speaker Change: And uh, we couldn't be more excited as I already mentioned. This is really a milestone for us. We are all so excited.
History, meanwhile, even further in the distance to our competitors. So from that exciting news, let's move on to the next slide, please.
Speaker Change: Let's look at the geographical breakdown, starting out with European Asia.
Speaker Change: Uh I would say we have a few things that stand out this border Europe as I mentioned in the introduction of ring, something measures are affecting our revenues in Europe maybe even to some of higher extents and anticipated Revenue.
Speaker Change: In the second quarter months to 1 180.2 million which corresponds to negative growth of 5% compared to the first quarter. This year, primarily driven by full water effect of the Ring passing
Speaker Change: In the UK, we continue the dialogue with the gaming commission and we would love to know when there is enough confidence in the review.
Speaker Change: We continue to work with optimization the resource me. Mix, we are making good progress and expect to see them assist in the coming quarters.
Speaker Change: We're facing continued challenges in Asia although we are much better positioned to combat these issues now than we have ever been as our efforts are yielding effects. Asia came in at a good 4% growth quarter on quarter and raise the new amount to 209.1 million
Speaker Change: In Asia. We have also launched our first ever Studio utilities serving, the regulated Philippine Market, which is the first license I gave me jurisdiction in Asia. This is really a huge accomplishment and my son growing, our Asian footprint next slide.
Speaker Change: As for North America, it continues to grow Treasury and keeps in its fine. Momentum the region is up almost 23% year on year with the total revenue of 73.9 million and the 4 main very well in the Life segment.
North America is healthy, regul, regulated with clear rules, making businesses a little bit more predictable and stable. It is also important to keep in mind that the live casino games are still in its instances. In the region that has been characterized by Land Based on online Army.
Speaker Change: That we now see.
Speaker Change: Waking up and taking life as soon as the heart.
Speaker Change: With a new agreement with ballet in Rhode Island, uh, we start to increase our footprint in the region even more.
Speaker Change: We also progressing well with the Galaxy acquisition and we expect to close the transaction during the second half of 2025.
For the quarter coming in at 3%, year on year to the revenue first 7.6 million. There's vast potential in religion, especially in the Brazilian Market where the adoption to a regulated environment takes time.
Speaker Change: Uh, that's normal. Uh, we remain confident that when the regulations regulations are in and new playbook is fully understood activity will pick up.
Speaker Change: And 1 of the best principles of the company and definitely for this region is that today we are opening our brand new studio in South. Paulo in Brazil, this studio comes the perfect time to capture the new market.
Speaker Change: Other regions mostly consists of Africa. Um we see 20% year a year ago for the quarter and a revenue amount to 23.44 million. I believe that Africans, great potential in the coming years and we will work as hard as ever to cons continuously. Expand the market
Speaker Change: And on that posting note, I will hand over to you again for a close to look at our financials next. Slide, please.
Thank you, Martin and good morning. Okay. So let's now drill down into the numbers for a few minutes.
Speaker Change: starting with a graph showing our financial development over time on page a
Speaker Change: As you have seen and heard we have delivered net revenues of 524.3 million this quarter, which is a slightly increased from last quarter and corresponds to growth of 3.1% year-over-year.
Speaker Change: We see some currency headwinds and if we would adjust to that, we would have seen a growth of approximately 8.8%.
Speaker Change: Our EBA was 345.3 Million this quarter, which corresponds to margin of 65.9%.
Speaker Change: Let's go to the next slide.
Speaker Change: And here we have our proposed statement. And Martin already covered the revenue breakdown on his first line. So I will not repeat that.
But on the cost side, we saw our total operating expenses grow by 10% year-over-year to 217.9 million.
Speaker Change: Consciously and constantly continuing to seek optimal cost efficient Solutions across the company. Not only in relation to optimizing the resource needs.
Speaker Change: And as a result, we're almost flat on total effects quarter on corporate.
Speaker Change: The financial items were negative 11.9 million, this quarter, primarily driven by reevaluation of Bank, balances.
Speaker Change: Further down in the pnl tax was for 6.2 million in the quarter with a tax rate of 15.7%.
Speaker Change: And all in all if we summarize we had a net profit for the period of 248.3 million and a earnings per share of 1.22 euros.
Speaker Change: Let's move on to the next slide.
Speaker Change: And I'm now page 10 where we have an overview of our operating cash flow and capital expenditures.
Speaker Change: Let's talk about looking at the graph to the right, which shows the development of our capex.
Speaker Change: Total capex in the period amounted to 333 million. And with this pace of investment, from the first half of the year, we believe that our full year, expectations of 140 million still is very valid.
Speaker Change: Our operating cash flow. After investment amounted to 192.3 million in the quarter in Q2, we typically see the weakest cash flow due to seasonal tax payments.
Speaker Change: But in this quarter, we also had an unusually high build up of working capital due to some timing effects of invoicing and payment.
Speaker Change: We do not see anything worrying in this and we expect the normalization in the next quarter.
Speaker Change: And then finally, for me, uh, some brief comments on our financial position on the next page.
Speaker Change: On this page, you will find the summary of the balance sheet for the second quarter and compared to what it looked like at the end of last year.
Speaker Change: The main highlights on this page page, probably relates to the cash position, where we have the tax and dividend payments and did the quarter with the cash balance of 5005.3 million.
Our total electricity amounts to 3.7 billion.
And during the second quarter on the back of the renewed mandate from the general meeting, we continued buying back, your own shares in the market and the total amounts of 65.4 million was used to buy back 1.1 million shares.
Speaker Change: For the first half of the year, we have used 219.5 million to buy back 3.2 million shares. And if we add the 5725 in cash, dividends a total amount of almost 800 million euros has been returned to our shareholders so far this year,
Martin Collison: With us, I will hand it back to Martin for his closing remarks.
Martin Collison: Thank you again. Uh, so let's summarize. The presentation and I move to Q&A
Uh, financially, we have been off to slow. Stop this year, due to the ongoing continued issues in Asia and South imposed, to active, strict during counting of regulated markets in Europe.
as a consequence, our Revenue growth is not reflecting our potential and
Martin Collison: Where it's supposed to be. However, even though the quarter is not financially, brilliant, it is on a total level in line with where we push all that we would be when initiating measures to address our challenges.
Martin Collison: Giving all the outside knowledge and circumstances. We actually have a solid quarter and a quarter that saw a lot of events, taking place signaling that we continue to push forward and build our future.
Martin Collison: 2025 would be a great year for evolution, even if not financially our best, but a year where we lay the foundation necessary to keep our growth trajectory going forward, this year will increase distance to our competitors, both in terms of redness, and in terms of products, our pipeline is the strongest. Yet, we keep on breaking records with the game, releases we have
Martin Collison: As the last remark, I want to say that 2025 is refreshing and we are as hungry as we were 20 years ago. We remain committed and dedicated raising the bar for ourselves for our colleagues and for our industry.
Martin Collison: With that, we open up for questions.
If you wish to ask a question, please dial pound key, 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6. On your telephone keypad.
B Carnegie, please go ahead.
Speaker Change: Good morning, guys.
Martin Collison: Good morning morning.
Speaker Change: Oh um, thanks for taking my question. I want to start with your your comments about improvements, uh, in in the second half. And if we could go through a little bit on, on sort of the drivers uh, behind that uh could we start there?
Speaker Change: um,
Speaker Change: we have a good improvement from, uh, from last quarter. We cautiously very cautiously optimistic. Uh, we are more or less in our range when it comes to the guidance. Uh, and and we believe A Little Bit Stronger.
Speaker Change: The second off.
Speaker Change: And how, how big part will will, the new Studios be more than in, in you, open in the Philippines recently. And, and today in Brazil,
Speaker Change: The the the Philippines and the Brazilian studio is of course in the south is sort of in super good. Uh, we really proud of that, we launched them the effect of of them into the figures in next quarter or today or tomorrow is of course, not significant. They will contribute over time.
Speaker Change: So it's a, it's a low, slow start or small start and then you build it up as you've done in, in, in the other Studios, uh, previously.
It's the same as any other Studio. Yeah, yeah, yeah. And and on your counter measures, uh, versus the cyber attacks. Uh, how much of a control do you think that you have now? Uh, do you keep your statement that you expect continued gradually improvements from the counter measurements, uh, throughout the year in Asia?
Speaker Change: Yeah, I will answer that. Uh, now but we also need to let other questions, so we don't take all the time but yeah, we are progressing with the council measures we are really. We are happy and and and we are in a better shape now than what we were before. Uh we we look forward to continued all of that in the absolute Forefront of what we can do technically. And we are as I said very cautiously optimistic, uh, for the second half.
Speaker Change: Okay, thank you. That was all from me. That was my third question. Brilliant, thank you very much. Thank you. Thank you very much.
Speaker Change: The next question comes from Oscar rockfist from ABG sundal. Collier. Please go ahead.
Oscar Rockfist: Thank you. Uh, good morning.
Speaker Change: Good morning.
Speaker Change: Just uh, wanted to to continue on, on Asia. Uh, so we saw I think was 4% sequential growth here. You have previously talked about that. The underlying growth has progressed, you know, solidly uh, while you have seen, uh, cyber attacks or offsetting that for a flattish development on on Asia, uh, so just on the on the puts and takes in Asia. Uh, the 4% sequential growth, we see now from q1, uh, is that representing in your view, uh, the underlying development or do you still see increased pressure from the cyber attacks? Uh, that still weighs on the on the quarter of a quarter development. Thanks.
Speaker Change: It's a good question. Uh, it's a it it's a very difficult question to answer. Um,
Speaker Change: I would rather say that we are happy with the traction that we have had in terms of Asian to little growth now in the in the quarter. And and we are as I said, the looking forward to coming quarters, even though we are cautious. Uh, it's very hard to determine how the growth are in total and compared to that. But but we see some Traction in the measures that we are taking
Speaker Change: Got it. Thank you. Um, and just to to follow up, if you see the
Only sort of the negative part of of the Asia cyber attacks. Uh, given your counter measures the, the technical ones. Uh, do you see now that the, uh, the people who are stealing your streams is that becoming lesser and, and lesser now, or is that still sort of a sort of a similar problem, and we just see the underlying growth
Speaker Change: uh, shining through
Speaker Change: its uh,
Speaker Change: uh, not that is uh, criminal or stealing so it's very hard to
Speaker Change: Underlying an offline. We see traction of the actions that we are taking right now as we see a little bit of a, we see growth in the in the region and we're happy with that and we are focusing day to day to continue that trajectory. And we are cautiously very cautiously optimistic.
Speaker Change: Perfect. Thank you. Just a final small 1, but uh, the RNG growth at, I mean, effectively zero. Uh, you said that it was impacted by a large RNG, uh, payout in in the quarter and uh, uh, maybe cannot quantify it perfectly. But, uh, is it sort of on track with the previous quarters? If we exclude, the, the payouts?
Speaker Change: Good question. I would say that we are
It's an okay quarter, not a good quarter, if even if that wouldn't have happened, but it's an okay quarter. We are we are on track where we are, where we should be.
Speaker Change: Perfect. That was all for me. Thanks.
Speaker Change: Thank you very much. Thank you.
Unidentified Moderator: The next question comes from Ed Yong from Morgan Stanley. Please go ahead.
Um, good morning. Uh, my first question is on, uh, uh, good morning. It's first question is on Europe?
Um, it sounded from your commentary. Martin like that was sequentially, a little bit weaker than you expected. Maybe from The Ring fencing. Could you perhaps give a little bit of color on if it was any, uh, particular region or any particular aspect of that? That was uh uh was a surprise or if it if it was me misreading it and it was the underlying picture in Europe, that was a little bit weaker.
Unidentified Moderator: it's probably a lot of effects but, uh,
Unidentified Moderator: we, we had 2 months after 3 of the effect of ring canceling in, uh, in the
Unidentified Moderator: Uh q1 uh you know the figures there. And now it's all a Little Bit Stronger effect than there is a lot of countries and a lot of things happening in Europe. Um and and the fact is a Little Bit Stronger um than what we have anticipated but it's also very hard to know exactly where you're going to handle it.
Unidentified Moderator: Fair enough. Um, uh, secondly, your commentary about, uh, uh, efficiencies there. And I guess this is baked into, uh, your H2 margin expectations. But you spoke about a couple of things 1 of, which was, you know, a continued drive towards efficiency. But you also mentioned a couple of times changing resource mix is that um, you know, Regional weighting of the employee.
For you basis or or is there anything else?
Unidentified Moderator: That you're particularly, uh, driving out with that comment.
The the resource next is, uh, Regional wasting way way, where we put our resource somewhere. We have them. And and after the situation, what we downscale a little bit in uh, Georgia as we know last year, we have had a. Not so beneficial resource match makes and now when we build out and we add other Studios which is uh
Unidentified Moderator: Better and more cost efficient. We will adjust that.
Unidentified Moderator: Okay, and then finally just quickly um on the uh working capital, you said you'll sort of get it back. Um uh next quarter um was there anything that drove it? Particularly it was it's it's it's it's it's perhaps a little bit surprising to see the scale of it in Q2. Was there any? Uh, again particular?
Unidentified Moderator: Customer or, or, or mixed effect behind that, or what? What? Drove that in Q2.
Speaker Change: No, hi Eddie, it's okay. Um, no nothing, nothing particular. Uh, I mean it's uh, I know from experience that with summer months can also be a little bit tricky, you don't get. I mean, you don't have customers don't have their
Speaker Change: The team that are in place to pay. Um, so I mean, if you can shift a little bit, uh, we saw probably a little bit larger effect of that this quarter than than we expected. But when when we dig into the numbers, it's not allowing, uh, even though it's the numbers, a little bit by a bigger than, than expected. So, we, we think it's a timing effect and, uh, the calendar and dates kind of end of month date and stuff like that. Nothing alarming. Okay. All right. Thank you.
Speaker Change: Thank you.
Unidentified Moderator: The next question. Comes from Praveen. Gondhale from Barkley's. Please go ahead.
Speaker Change: Enforcements or enhancements. And then there, there are some external legal measures, uh, when it comes to your countermeasures. Uh, where are we? Uh, on that curve of development of internal measures? Are you, uh, are you, uh, you think you are you have done, whatever needed, uh, internally on the tech, uh, technology front. And now, it is only about external, where are we on that curve? Uh, when, when we think about the countermeasures there,
Speaker Change: I think that we I don't know, external in turn, but there is of course, 1 portion of motivation your customers to, to keep their uh, their the, the the network clean and and that's sort of in some extent external. We are focusing on on that. But we also of course focusing on the internal.
Counter measures technical, uh, things that we can do to to protect our Innovations and fantastic products. Uh, we are continuously working and focusing on the internal and we expect to continue doing that. Maybe even for for a very long time for you. Uh, I don't see an end to it. I see that we will continue to need to develop that and and we have a little bit of traction of that now, and I'm happy with the result.
Being cautiously optimistic now for for the rest of the year.
Uh, thank you. Uh, and then ukgc review, do you have any visibility on the expected timeline? Uh, for the conclusion of of the review?
Speaker Change: No, I don't have the visibility on the timeline, it's in the hands of the regulator to the most part. I I would say that we are Saddam in and do whatever we can in the fast measure, um, but we don't have that.
Speaker Change: I, I can guide you on the timeline. Unfortunately, thank you.
Speaker Change: Thank you.
Speaker Change: The next question comes from. Estelle wine grad from JPM. Please go ahead.
Estelle Winograd: Hi, good morning. Um, I've got 3 questions. Uh, please, the first 1, maybe on the visibility around. Asia, what is the underlying growth when can expect medium turn? I mean, should we think about more like a mid to high single digit growth going forward versus the double digit percentage? We had in the past?
Speaker Change: Question on.
Speaker Change: We just wanted.
Speaker Change: Understand what other key levers to achieve that. Um and the last question is just on FX, just wanted to understand better. The biggest drivers there as it seems that estimates were going for a slightly softer adverse impact here. Thank you.
Speaker Change: Okay, uh, we we don't, we don't do not, unfortunately the guide on growth, uh, for any region. Uh, and
Speaker Change: uh, giving the the situation, the the only comment I made so far is the the cautiously optimistic and happy with the quarter when it comes to growth in Asia.
Speaker Change: Uh, when it comes to the margin, we withhold our margin guidance of 66 to 68%. We are in line with the guidance. Uh,
I would say in in Q2, 65.9% more or less in, in the range and, and we're a little bit shy of the
Speaker Change: Uh, guidance in q1, which was down 65.44% correct me if I'm wrong by your name. But, uh, so so that gives a Little Bit Stronger, second half of the material.
Improvement. I, I I don't know. Uh, it's just that we would be in the range and, and to get into the range. We need to live the stronger next year. The next half year,
Uh, there are 6, effect is Blended. We put that out in, uh, as how do we know 8.8 and, and that's, that's a mixed bag of a lot of effects. But of naturally, I mean, it's a dollar goes down, our Revenue, converted to euro for North America goes down, so that affects us. And there are a couple of those effects in, in the group.
Speaker Change: Okay, thank you.
Speaker Change: Thank you.
Speaker Change: The next question comes from Raymond. K from nordea. Please go ahead.
this situation that we have now isn't it's it's not new, it's not only us uh it's been going on for years, for example, in sports, where you want to see champions league and you go into site and you pay, I don't know $15 for that to Euro and then you watch the Champions League football game and and it's actually stolen
Speaker Change: Uh, you you that has been there everywhere and and to to to actually protect your intellectual property, your Innovation, and your Champions League stream that you bought for a lot of money. You need to continuously do a lot of technical measures and as the internet evolves, you need to do that. And we were
Speaker Change: uh,
Speaker Change: Quote a little bit what god with the technology that they were using to see in our stream. And now we are gaining traction with actions, we take and protect it and I think that we are in the absolute Forefront of internet right now to what is possible. But I also think that we need to continue that work to a longer time period and going forward
Speaker Change: Thanks, Martin, that was uh, really helpful. Uh, secondly on just the Galaxy acquisition expected to close here in H2. Do you see any sort of regulatory hurdles in conjunction with that? I'm thinking specifically about how maybe us Regulators view online versus land-based casinos?
Speaker Change: Um,
Speaker Change: I think that they actually view it. Exactly the same. Usually, uh, online or Land Based is just 2 different parts of the same the same life though so where we have a license. It we all have a license, doesn't matter really. If it's online or wrong, but that's the best example. There is a lot of States. A lot of licenses, a lot of administration, lots of information, and it's progressing. Well, we're actually doing well, but but it's also depends on the timelines and the meetings in the in The Regulators when they have those meetings and what we're supposed to do. So. So we are we, we we doing well and, and we look forward to being able to close it in the second half.
Speaker Change: Perfect. And a third and final 1. If I met uh just a quick 1 on net. Financials that minus 12 million. It's sort of stands out compared to other quarters. There is there anything 1 off in nature in that that we should be mindful of?
Speaker Change: Uh, yes. I mean it's it's a quarter where we have had obviously the BuyBacks continuing. We have also had a dividends uh and we took money up and converted it into set. So it's been been a fairly material bank balance is in effect. Has been revalued.
Speaker Change: Okay, that makes sense. Thanks for that. I'll get back in line.
Speaker Change: Thank you. Thank you.
Unidentified Moderator: The next question comes from, Jamie Bass from City, please go ahead.
Jamie Bass: Hi, I'm good morning everyone. Um, just 2 questions for me, please?
Jamie Bass: Um, first off is going back on that sort of, um, expectation for a stronger performance in H2, um, is that mainly based on sort of its sequential Improvement in Asia? Or are there other regions that you think can also improve as we go through the year? Um, and then second question is on the Geo blocking. So we've had a bit of confusion on this side so just to completely clear it up. Um, firstly, excluding the UK is this all um proactive measures or any of these in other countries outside the UK reactive and also What proportion of regulated European markets? Have you now implemented? Uh, Geo blocking. Thank you.
Jamie Bass: Uh, okay, the the Improvement that we see in the next quarter, relating to the margin. As I stated, we believe that we will be within our guidance. 66 68%. We are a little little little shy of that mainly due to the fact of the q1. Uh, and we look forward to gain that traction that traction to get us into that. Um,
Jamie Bass: Guidance which is done just to cancel the percentage points in uh, Q2 and a little bit more, that that there is a mixture of that. We, we will work with the resource mix, we will work with other. We look forward to flattening out the effect of the Ring, something and uh, and we cautiously optimistic in in Asia and we look forward to Brazil and we look forward to a lot of things and, and that will come down to to A Little Bit Stronger, second half, uh, then
Jamie Bass: Some questions. Sorry about that. You're working. How much you work for me? Yeah. With the idea of blocking. Its I mean you can look at what happening you 1. And then you you look at the the that was only 2 months and now we have a full quarter and then you get the figure and then you see that we are a little bit more than that. And uh, we don't, we don't guide on each and every Market but but we are working hard with to see that we are in a position proactively on the European market and that is a little bit more expensive than what we anticipated.
And then there were so much. Yeah.
Jamie Bass: Mhm.
Jamie Bass: Do they did you have any more questions? Maybe we forgot 1.
Jamie Bass: No, no no. I was just saying. Okay, perfect. Thank you very much for your questions.
The next question comes from Andrew Tam from Rothschild and Company Redbarn. Please go ahead.
Andrew Tam: Hi. Good morning and thanks for taking my question. Um most of mine have been answered but just 1 for me. Can you confirm or deny whether Evolution makes available any of its streams of video streams to uh parties outside of its b2c operator? Customers uh and whether the counter measures has that sorry what did you what? Sorry tell me again.
Ask the question is, do you make your video stream available to any, uh, uh, third parties outside of your b2bc operators?
Andrew Tam: Yes, or no.
Speaker Change: No, we work. Only with licensed operators and aggregators.
Speaker Change: Understood, thank you.
Uh, okay good.
Speaker Change: Next, please.
Unidentified Moderator: The next question comes from Rasmus. Ingeborg from Kepler. Shuu, please. Go ahead.
Speaker Change: Yes. Hi, good morning. Um,
Speaker Change: I had just 2 questions on on uh firstly in the in the second quarter, there is a sequential Improvement. Was this continuously throughout the quarter or has it done anything to do with Easter or how would you characterize it?
Speaker Change: Uh, uh, there are of course, some seasonality effects in, uh, in in, on my gaming. So, so, I would say that, actually, you
Speaker Change: June the summer months. A little bit and for example,
Speaker Change: November December. So that comes into play. But, but there is no, we don't, we don't guide on the monthly, I
Speaker Change: There's nothing.
Speaker Change: To point out there.
Speaker Change: okay, and the second question, um,
With regards to to the second half of the year. Should we think of it as a gradually Improvement in in in the margin? Or is
Speaker Change: Or how how should we think about it?
Speaker Change: I was only making a joke. You mean the 0.1% above 56 but I didn't do that. Uh, sorry about that. But uh, I I, we are cautiously optimistic. We see a lot of things that we are doing right now to to, to, to, to get into our guidance. And uh, and um,
Speaker Change: That's that's where we are. I don't see any bumps or gradually. We will get there.
Speaker Change: Thank you.
Speaker Change: Thank you.
Unidentified Moderator: As a reminder, if you wish to ask a question, please dial pound key. 5 on your telephone keypad.
There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.
Speaker Change: Okay, thank you everybody for all.
Unidentified Moderator: your questions and for listening,
And I look forward.
Unidentified Moderator: To soon again, and have a nice day.